The livelihood diversification pattern adopted by the farming community cultivating rainfed crops in Telangana State was studied. Objectives focussed on the identification of the various options for household livelihood diversification available to the farming community, and the estimation of the diversification index and factors that influence diversification strategies. Respondents were selected from major rainfed crop cultivation areas. The sample comprised small, medium, and large pigeon pea-growing farmers selected from the high pigeon pea-cultivating area of Telangana State. Household income constituted the main indicator of diversification comprising sources of family income received from crops, livestock, horticulture, remittances received from government schemes, and other household activities. Various farm and non-farm sources of income were identified and significant factors that determine the impact of rural livelihood of rainfed farmers in predominant pigeon pea growing areas were determined. The majority of farmers are small and marginal (70%), medium (25%), and large (5%) who are cultivating short-duration pigeon pea crop varieties of 150 -180 days duration. The pigeon pea crop is cultivated both in Kharif and Rabi seasons. In rabi season, the pigeon pea crop usually is transplanted and irrigated. The majority of the farmers constituted marginal and small having medium to high diversity index ranging between 0.7040-0.7346 and medium (24.66 %) and large farmers (5.48 %) have a diversity index of less than 0.6560 which indicated that small farmers are more diversified compared to large farmers. It is concluded that small farmer households depend upon other non-farm activities and government schemes for their livelihood other than farming in contrast to medium farmers and large farmers' livelihood patterns. Keywords: Rural Livelihood, Legume crop, Rainfed, Diversification